6th consecutive quarter of positive FUM flows

FUM decreased 0.9% over Q1 of FY23 from £15.7bn on 30 Jun 22 to £15.5bn on 30 Sep 22. Impressively, a 6^th consecutive quarter of net inflows was recorded (+£191m), achieved despite the last three quarters (Jan – Sep 22) being periods of significant volatility and market falls, which often correlate with weakening flows for investment managers.

We remind readers that BM was one of the strongest performers in attracting and retaining client funds during calender-H1 of 2022. Our FUM forecast for the end-FY23 has reduced to £17.0bn from £17.9bn on a mark-to-market adjustment. This, coupled with a jump in the 10-year Gilt yield (the risk-free rate used in our DCF valuation) has reduced our fundamental valuation to 2,950p per share, still 63% above the current share price. We also flag that BM’s PER of 14.5 is well below a peer group median of 17.3.